Thursday will be very important to either confirm or reject the move higher in rates.
Chicago, IL (PRWEB) February 12, 2014
Mortgage Rates continued their rally today, February 12th, from yesterday signaling a counter trend to the past month of steady declines. Peoples Home Equity thinks the move shows the long term trend in mortgage rates is up regardless of recent home sales volume, and Federal Reserve policy. Now truly is a good time to apply for a home loan before rates may reach new highs by summer.
As shown on MortgageNewsDaily.com, 30 year fixed rates climbed 0.06% today after climbing 0.04% on Tuesday, February 11th. The market has seen rates climb for two days before only to decline again, However, what makes today and yesterday’s move different is that mortgage rates have not increased at such a fast pace in over a month which signals a confirmed end of the downtrend since the beginning of 2014. The cause of the rebound in rates was most likely due to the rally in equities over the past 5 days. Thursday will be very important to either confirm or reject the move higher in rates. Peoples Home Equity believes rates will follow their annual trend, which is higher. Yes, pending home sales, new home sales, and existing home sales have been falling, yes The Federal Reserve has confirmed it intends to keep rates low, however, the annual trend in rates is higher. One should never fight a trend.
Peoples Home Equity reminds readers that it published a release on November 15th titled “43 Years of Data Shows Historical Bias in Mortgages Rates.” The released showed that mortgage rates tend to be the lowest during December, January, and February. As we are passing through February readers should be cognizant that seasonal factors such as home buying will influence mortgage rates. If thinking about applying for a home loan, now is the time especially since rates are still lower than a month ago.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300